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Vanuatu Acts Against Local Council In Case Of Unpaid Tax

by Mary Swire, Tax-News.com, Hong Kong

16 August 2005

Vanuatu's minister of internal affairs, George Wells has confirmed that he to take action against Port Vila Municipal Council (PVMC) over a debt of VT280 million (US$2.6 million) in unpaid property tax and a VT60 million overdraft with the bank.

In an interview with The Independent, Mr Wells, who has responsibilty for municipalities and decentralised authorities, stated that the government has no option but to act immediately to "remedy the critical situation of this council."

"I have been seeking late last week legal advice from the State Law Office and asked prime minister Ham Lini, who is responsible for the judiciary, to intervene and find a suitable resolution to the matter, as a record showed that Vila municipality has all of its assets exhausted," he said.

According to The Independent, prime minister Lini last week addressed a letter asking the Attorney General, Sampson Endehipa, to assist in resolving the matter with immediate effect.

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